FedEx says economy is worsening, cuts outlook

AP Photo

(AP) NEW YORK - FedEx (FDX) says the global economy is worsening and it's again cutting its forecast for the fiscal year ending in May.

The package delivery company also expects net income for the current quarter ending in November to fall well below last year's quarter. The stock lost about 2 percent.

For the full year, the Memphis, Tenn. company now expects to earn between $6.20 and $6.60 per share, compared with a previous forecast of $6.90 to $7.40 per share.

For the current quarter, FedEx sees earnings of $1.30 to $1.45 per share, compared with $1.57 per share last year. Both predictions are well under analysts' forecasts.

In the three months that ended in August, FedEx Corp. reported earnings of $1.45 per share. That hit the top end of its recently lowered estimate.